Some statistics indicate that foreigners earn less than their Swiss counterparts. What exactly do those figures show?
Wages of Swiss citizens are statistically higher than those of foreign nationals, new analysis of data based on the figures the Federal Statistical Office (FSO) indicates.
For instance, the median wage of the former group, all sectors and jobs combined, amounts to 7,164 francs per month, while this figure is 6,089 francs for the latter.
Significant differences also exist in terms of the type of residence permit and gender (with men earning more than women in both foreign and Swiss groups).
For instance, men who are C permit holders and cross-border border commuters (G permit) earn most within the foreign group — 6,522 and 6,251 francs, respectively.
Next are people with B permits (5,841), while L-permit holders earn the least — 5,295 on average.
What can we make of these numbers?
As is often the case with statistics, there are many variables involved in the calculations, which can skew the results one way or another, especially if the context is missing — for instance, specific positions, sectors, or experience required for a job.
Let’s first look at different pay scales among various permit holders.
While the analysis doesn’t explain why ‘higher’ the permits command higher wages, the reason may be that those with a C permit have been living in Switzerland longer — generally at least 10 years — than someone with a B or L permit who may just have arrived in Switzerland.
However, variations within these groups do exist, because it is not inconceivable that a B permit holder may have a higher position within a company than someone with a C permit (read more about this below).
What about pay differences between the Swiss and foreign nationals?
Here it is important to know what comparison criteria were used.
Generally speaking, low-wage jobs have a high share of foreign-born workers.
According to economist Lisa Triolo, “the proportion of foreign workers is highest in jobs that are generally considered unappealing – whether because of the low pay, high level of physical demands, or irregular working hours.”
Another analysis, carried out by the he Swiss Economic Institute (KOF), shows a division of roles between native Swiss workers and foreign nationals.
“Immigrants primarily complement the locals here,” said Michael Siegenthaler, KOF’s labour market expert.
Are there jobs and sectors where foreigners earn as much as, or more, as the Swiss?
Other FSO figures indicate that in some positions, foreigners do earn more than the Swiss.
“We observe differences depending on the fields of activity, diplomas, and regions of the country,” the study found.
For instance, in middle and upper management, those with a B permit have highest salaries: they earn 12,791 francs a month.
Next are those with a C permit, with 11,495 a month. G permit holders — that is, cross-border workers — earn 10,707 francs.
All of them have higher wages than the Swiss, who earn 10,476 a month.
READ ALSO: In which jobs in Switzerland do foreign workers earn more than the Swiss?
What does the law say?
Switzerland’s labour legislation prohibits discrimination based on a person’s nationality, gender, religion, ethnicity, and sexual orientation.
Additionally, the Agreement on the Free Movement of Persons (AFMP), by which Switzerland is bound, stipulates that EU citizens cannot be treated unfavourably, particularly in terms of salary, merely because of their nationality.
The same rule applies to EFTA nationals (Norway, Iceland, and Liechtenstein) with which Switzerland has a similar treaty.
READ ALSO: Can my Swiss employer pay me less because I am a foreigner?
